Bitcoin ETF Outflows Surge as Veteran Whales Liquidate Holdings

Bitcoin exchange-traded funds (ETFs) are witnessing their most significant outflows since August, coinciding with veteran investors liquidating substantial holdings. As Bitcoin's price hovers around $102,000, both Fidelity and Ark's ETFs have recorded notable withdrawals.

Major Outflows from Bitcoin ETFs

Data from SoSoValue reveals that the funds experienced net outflows totaling $558.4 million. This marks the most considerable single-day decline since early August. Fidelity's FBTC led the outflow with $256 million, followed by Ark Invest and 21Shares' ARKB at $144 million, a record relative to the fund's size. Meanwhile, BlackRock's IBIT ETF faced $131 million in outflows, marking the seventh outflow day in eight sessions, indicating investor caution due to increasing macroeconomic uncertainties.

Whales Continue to Exit

According to market experts, the ETF outflows may be driven by ongoing sell-offs from long-term Bitcoin holders. Charles Edwards, co-founder of Capriole Investments, noted the market's entry into a "super whale exit phase." Significant volumes, ranging from $100 million to $500 million, are being offloaded by dormant Bitcoin wallets, indicating early adopters are cashing out. On-chain data supports this trend, with K33 Research reporting net inflows of 319,000 BTC held for six to twelve months being repositioned for profit-taking. "Mega whales" have reportedly sold over $45 billion in recent weeks. However, optimism remains as industry leaders like Michael Saylor urge investment and some bearish traders reconsider their positions.